Pen is the Capital of the Pen state, Pon is its trade center. Pen is one of the only states that refuse a Wizardlander advisor. This is because of the magic battles the Wizardlanders would get into with the Abasadians and the Trading Elves.
Pon is the Port trade city that connects The Lake with Abasadia. A trade route that the Wizardlanders wish to end. Creation and building magical items are common here, both to use and to buy.